Uk Pension If Non-resident In Uk And Living In Thailand

[pete66]

I am 40 and self-employed UK citizen, currently living in UK. I am hoping to become non-resident in UK and live in Thailand permanently.

My question is will this affect my rights to UK pension when I am 65? Or does UK pension just depend on whether person is still paying NI, regardless of residency status?

Thanks,

[sumrit]

I am 40 and self-employed UK citizen, currently living in UK. I am hoping to become non-resident in UK and live in Thailand permanently.

My question is will this affect my rights to UK pension when I am 65? Or does UK pension just depend on whether person is still paying NI, regardless of residency status?

Thanks,

You need to pay 30 years of NI contributions to qualify for a full state pension at 65, regardless of where you live. Remember that your pension will be frozen at the level it's at when you're 65 if you're living in Thailand at the time, or at the time you move abroad if that's after you're 65 (ie; no annual increases).

[pete66]

I am 40 and self-employed UK citizen, currently living in UK. I am hoping to become non-resident in UK and live in Thailand permanently.

My question is will this affect my rights to UK pension when I am 65? Or does UK pension just depend on whether person is still paying NI, regardless of residency status?

Thanks,

You need to pay 30 years of NI contributions to qualify for a full state pension at 65, regardless of where you live. Remember that your pension will be frozen at the level it's at when you're 65 if you're living in Thailand at the time, or at the time you move abroad if that's after you're 65 (ie; no annual increases).

Many thanks. I have paid 20 years now so if I just keep paying for another 10 years, even if resident in thailand, I will qualify for full state pension? Also, can state pensions only be paid into UK bank accounts?

[Lite Beer]

I am 40 and self-employed UK citizen, currently living in UK. I am hoping to become non-resident in UK and live in Thailand permanently.

My question is will this affect my rights to UK pension when I am 65? Or does UK pension just depend on whether person is still paying NI, regardless of residency status?

Thanks,

You need to pay 30 years of NI contributions to qualify for a full state pension at 65, regardless of where you live. Remember that your pension will be frozen at the level it's at when you're 65 if you're living in Thailand at the time, or at the time you move abroad if that's after you're 65 (ie; no annual increases).

Many thanks. I have paid 20 years now so if I just keep paying for another 10 years, even if resident in thailand, I will qualify for full state pension? Also, can state pensions only be paid into UK bank accounts?

Yes. 30 years contributions. Frozen when you first recieve and they will not send it to Thailand.

[briley]

At your age I'd wait. If you pay 10 years now then get a few years in the UK with your stamp paid you don't get any refund.

10 years before you retire check the rules. Currently I'd wait until 3 years before retirement and then catch up one year at a time and then the maximum 6 years when you retire.

You do pay at a slightly higher rate if you pay 'late' but paying one year too many is more expensive.

[JohnC]

Pensions can be paid into overseas accounts through the Pension Service contact bank (forget which one) however, their is a charge for this service also remember that from 2024 the retirement age is rising in increments to 68. Given you are 40 now I estimate you will qualify for the state pension in 2025. Note also that from 2010 married couples pension (knows as Adult Dependancy Increase or ADI) ceases for new claimants and after 2020 for current claiments. Further information can eb found at

http://www.thepensionservice.gov.uk/home.asp. Hope this helps.

[JohnC]

Sorry mixed up my pension companies, for state pension payments :

Before going abroad please consider how you would like your money paid. The Pension Service cannot pay by direct deposit in all countries abroad. In countries where we cannot pay by direct deposit we will post a sterling cheque, either to your home address or to your bank.

They will pay into a uk bank or send a cheque to country of residence but do not guarentee the post! In other words keep a UK bank a/c like nationwide flexi account that does not charge for withdrawals abroad>

[Treborz]

If you have no plans to return to the UK then when you reach the age of 50 a QROPS might be a good option, if they are still available.

Speak to your financial advisor though.

[davyboy]

If you go into the UK Pensions Site you will find the answers to all your questions and the updates on the new pension regulations!

[JohnC]

If you have no plans to return to the UK then when you reach the age of 50 a QROPS might be a good option, if they are still available.

As I understand the regulations QROPS is only available for private pensions and the state pension does not qualify (unless someone knows different?)

[ignis]

You can move anywhere, then make payment of voluntary National Insurance contributions so you have the 30 years.

http://www.hmrc.gov.uk/faqs/vol-conts.htm

Do check it out 1st, as the difference in being 5years short is not much

[friend says he is 5yrs short and receives 90p less then the full state pension] maybe someone on here can advise about this?

Edited January 10, 2009 by ignis

[briley]

If you are short you get that number of years over the number required to get a max pension of the max pension.

So your friend is 5 years short. Assuming they are under the current rules they need 45 years to get a full pension of about £90 a week.

You friend will get 40/45 x £90 which is £80 a week.

If he pays the 5 years missing (if possible) it will cost about £400 x 5 years or £2,000 or less. Takes less than 4 years to recover the expenditure.

Not 90p per week difference.

[JohnC]

Assuming they are under the current rules they need 45 years to get a full pension of about £90 a week.

Under the current scheme you need 44 years of payments from between the tax year in which you reach 16 until your 65th birthday to qualify for a full state pension.

If you complete these before 65 and are still working you will pay NI as normal but will not increase your pension. There is also a rule about when you reach 60 and are not working you get automatic credits up to age 65. For the full rules check out http://www.thepensionservice.gov.uk/home.asp as I indicated above.

[briley]

Assuming they are under the current rules they need 45 years to get a full pension of about £90 a week.

Under the current scheme you need 44 years of payments from between the tax year in which you reach 16 until your 65th birthday to qualify for a full state pension.

If you complete these before 65 and are still working you will pay NI as normal but will not increase your pension. There is also a rule about when you reach 60 and are not working you get automatic credits up to age 65. For the full rules check out http://www.thepensionservice.gov.uk/home.asp as I indicated above.

I could be wrong but yes, you need 44 years of contributions since you are given one 'free' year.

But the pension is worked out on 45 years of contribution.

[Tafia]

Assuming they are under the current rules they need 45 years to get a full pension of about £90 a week.

Under the current scheme you need 44 years of payments from between the tax year in which you reach 16 until your 65th birthday to qualify for a full state pension.

If you complete these before 65 and are still working you will pay NI as normal but will not increase your pension. There is also a rule about when you reach 60 and are not working you get automatic credits up to age 65. For the full rules check out http://www.thepensionservice.gov.uk/home.asp as I indicated above.

I could be wrong but yes, you need 44 years of contributions since you are given one 'free' year.

But the pension is worked out on 45 years of contribution.

I think you find the rule has changed to only 30yrs contributions. When I checked mine this is what pensions told me. Check the website or contact them, then you will know exactly where you stand.

Edited January 11, 2009 by Tafia

[Lite Beer]

30 years contributions are needed for a full UK state pension.

[sumrit]

Assuming they are under the current rules they need 45 years to get a full pension of about £90 a week.

Under the current scheme you need 44 years of payments from between the tax year in which you reach 16 until your 65th birthday to qualify for a full state pension.

If you complete these before 65 and are still working you will pay NI as normal but will not increase your pension. There is also a rule about when you reach 60 and are not working you get automatic credits up to age 65. For the full rules check out http://www.thepensionservice.gov.uk/home.asp as I indicated above.

True....... but you need to be living in the UK between the ages of 60 - 65 to qualify for the free credits. Live anywhere else in the world and, if you haven't got the required 44/30 years credits you have to pay for them to get a full pension.

[ignis]

If you are short you get that number of years over the number required to get a max pension of the max pension.

So your friend is 5 years short. Assuming they are under the current rules they need 45 years to get a full pension of about £90 a week.

You friend will get 40/45 x £90 which is £80 a week.

If he pays the 5 years missing (if possible) it will cost about £400 x 5 years or £2,000 or less. Takes less than 4 years to recover the expenditure.

Not 90p per week difference.

One needs a crystal ball... my friend died last month of cancer, his birthday was in November when he was 66.... so had he paid the missing years he would have never recovered the expenditure...

What I find odd/can not understand, if you work overseas then you need to get a document from the tax office to sent to Newcastle = this is added to what was paid in the UK........ Right ? so you get a single UK pension at the age of 65 for men right ?

Now another friend she lives now in the UK [born] but left in her 20's and married a German, she also worked in Germany, her husband died 16 years ago, she gets a widows pension in Germany as well as her UK pension for the last 8 years........ ??

Now I worked 7 years in Germany, 4 years in Holland and 12 years in Portugal, all tax/pension papers from these Countries I sent to Newcastle and these years were added to my working years in the UK I have the paperwork showing these years from Newcastle..... Can I also claim a pensions from Germany, Holland & Portugal as well ?

[JohnC]

But the pension is worked out on 45 years of contribution

http://www.thepensionservice.gov.uk/planni...-worked-out.asp

Women must normally have between 39 and 44 qualifying years to get a full State Pension, depending on the date they reach their State Pension age

Men must normally have 44 qualifying years to get a full State Pension

30 years contributions are needed for a full UK state pension.

Only for those reaching the age of 65 after 6th April 2010, prior to that the above rules apply.

Edited January 11, 2009 by JohnC

[pete66]

I've been paying NI class 2 contributions in the UK (20 years) because I am self-employed, and its only about £2.20 a week. Class 3 is £8 a week or something.

But now I am filling in CF83 form (for paying voluntarily abroad), it asks whether I want to pay class 2 or class 3, and what I am doing abroad ie.

Are you working abroad?

If yes, will you be employed or self-employed?

My employment abroad will begin on:

It also asks whether I am ordinarily resident in the UK, and how many years I intend to stay abroad.

Also, in the notes it says if you say you are self-employed abroad, they may ask for evidence.

So, thoroughly confused ..... I intend to start up my own business in SEA, which I presume is "self-employed", but I don't have any evidence, because I haven't started yet! And what is evidence of self-employment anyway?

Also, what is the "thrust" of all this? Are they wanting people to pay NI3 instead of NI2 because they NI3 produces a lot more revenue than NI2? I don't really want to pay £8 a week for 10 years, £2 a week sounds a lot more fun

Edited February 5, 2009 by pete66

[mrbojangles]

At your age I'd wait. If you pay 10 years now then get a few years in the UK with your stamp paid you don't get any refund.

I concur. I'm 45 and have 28 years paid up. I now live in Saudi and have stopped paying because i have 20 years to just pay 2 years in. I'm saving nearly £400 a month not paying anything. Marvellous.

[pete66]

At your age I'd wait. If you pay 10 years now then get a few years in the UK with your stamp paid you don't get any refund.

I concur. I'm 45 and have 28 years paid up. I now live in Saudi and have stopped paying because i have 20 years to just pay 2 years in. I'm saving nearly £400 a month not paying anything. Marvellous.

Yeah I get it now. I've got another 25 years to pay just 10 years in. And who knows what state the UK will be in then ..... wait till nearer the time is sound advice, thanks